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1 | |
In a cubic production function... |
| | A) | the function has concave isoquants. |
| | B) | both inputs are required in order to produce output. |
| | C) | one input may be set to zero and output may be produced. |
| | D) | both b and c |
| | E) | all of the above |
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2 | |
When estimating a short-run production function of the form Q = AL3 + BL2, it is necessary to specify in the computer routine that... |
| | A) | the intercept term is forced to equal zero. |
| | B) | A < 0. |
| | C) | B > 0. |
| | D) | b and c |
| | E) | all of the above |
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3 | |
When estimating a short-run average variable cost function, |
| | A) | the cost data must be deflated. |
| | B) | the intercept must be forced to equal zero. |
| | C) | at least one input must have been constant during the period in which the data were collected. |
| | D) | both a and c |
| | E) | both b and c |
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4 | |
A theoretical restriction on the short-run cubic cost equation, TVC = aQ + bQ2 + cQ2, is: |
| | A) | a > 0, b > 0, c > 0 |
| | B) | a > 0, b > 0, c < 0 |
| | C) | a > 0, b < 0, c > 0 |
| | D) | a > 0, b < 0, c < 0 |
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5 | |
The next 6 questions refer to the following:A short-run production function was estimate asQ = −0.003L3 + 0.18L2 At what level of labor usage does the maximum average product occur? |
| | A) | 20 |
| | B) | 30 |
| | C) | 40 |
| | D) | 50 |
| | E) | 60 |
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6 | |
What is average product when it is at its maximum level? |
| | A) | 2.4 |
| | B) | 2.7 |
| | C) | 5.4 |
| | D) | 8.1 |
| | E) | 18.9 |
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7 | |
What is total product when average product is at its maximum level? |
| | A) | 30 |
| | B) | 72 |
| | C) | 81 |
| | D) | 162 |
| | E) | 243 |
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8 | |
At 10 units of labor, what is average product? |
| | A) | 1.25 |
| | B) | 1.5 |
| | C) | 2.1 |
| | D) | 4.8 |
| | E) | 17.75 |
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9 | |
At 10 units of labor, what is marginal product? |
| | A) | 1.5 |
| | B) | 2.7 |
| | C) | 3.5 |
| | D) | 4.5 |
| | E) | 12.6 |
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10 | |
At 10 units of labor, what is total product? |
| | A) | 21 |
| | B) | 48 |
| | C) | 27 |
| | D) | 15 |
| | E) | 45 |
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11 | |
The next 6 questions refer to the following: <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif::::/sites/dl/free/0070601607/124371/chap11_11.gif','popWin', 'width=646,height=330,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (5.0K)</a>]]>
The estimated marginal cost function is: |
| | A) | MC = 38.05 − 8.4Q + 0.9Q2 |
| | B) | MC = 38.05 − 2.1Q + 0.6Q2 |
| | C) | MC = 38.05Q − 8.4Q2 + 0.9Q3 |
| | D) | MC = 38.05Q − 2.1Q2 + 0.1Q3 |
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12 | |
If the firm produces 20 units of output, what is estimated AVC? |
| | A) | $48.05 |
| | B) | $74.05 |
| | C) | $230.05 |
| | D) | $242.05 |
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13 | |
If the firm produces 20 units of output, what is estimated total cost? |
| | A) | $1,481 |
| | B) | $6,101 |
| | C) | $6,341 |
| | D) | $2,981 |
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14 | |
If the firm produces 10 units of output, what is estimated MC? |
| | A) | $44.05 |
| | B) | $26.05 |
| | C) | $77.05 |
| | D) | $270.05 |
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15 | |
At what level of output is AVC minimum? |
| | A) | 0.14 |
| | B) | 4.7 |
| | C) | 7 |
| | D) | 28 |
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16 | |
What is the minimum value of AVC? |
| | A) | $ 23.35 |
| | B) | $ 52.75 |
| | C) | $ 10.25 |
| | D) | $111.55 |
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17 | |
A cubic specification for a short-run production function is appropriate when the scatter diagram indicates... |
| | A) | total product is decreasing throughout the range of labor usage. |
| | B) | marginal product of labor falls throughout the range of labor usage. |
| | C) | an S-shaped total product curve. |
| | D) | an S-shaped marginal product of labor curve. |
| | E) | a U-shaped marginal product of labor curve. |
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18 | |
The next 3 questions refer to the following:A firm estimates its long-run production function to be Q = −0.0050 K3L3 + 15 K2L2 Suppose the firm employs 10 units of capital. The product curve(s) in the short-run are: |
| | A) | TP = -5 L3 + 1,500L2. |
| | B) | AP = -5 L2 + 1,500L. |
| | C) | MP = 15 L2 + 3,000L. |
| | D) | both a and b |
| | E) | both a and c |
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19 | |
At _______ units of labor, marginal product of labor begins to diminish. |
| | A) | 600 |
| | B) | 1000 |
| | C) | 200 |
| | D) | 66.67 |
| | E) | 100 |
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20 | |
At ________ units of labor, average product of labor begins to diminish. |
| | A) | 350 |
| | B) | 150 |
| | C) | 66.67 |
| | D) | 100 |
| | E) | 200 |
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